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UPDATE: Steelcase (SCS) Tops Q3 EPS by 5c, Offers Mixed Q4 Guidance

December 17, 2020 4:06 PM EST
(Updated - December 17, 2020 4:09 PM EST)

Steelcase (NYSE: SCS) reported Q3 EPS of $0.08, $0.05 better than the analyst estimate of $0.03. Revenue for the quarter came in at $617.5 million versus the consensus estimate of $628.8 million.

Outlook:

At the end of the third quarter, the company’s backlog of customer orders was $545 million, or 15 percent lower than the prior year and includes approximately $60 million of delayed shipments from the third quarter. Going into the fourth quarter, average weekly order levels during the first two weeks of December remained similar to the third quarter. As a result, the company expects fourth quarter fiscal 2021 revenue to be approximately $650 million. The company reported revenue of $946.2 million in the fourth quarter of fiscal 2020. Adjusted for $48.4 million associated with an extra week of shipments in the fourth quarter of fiscal 2020, the divestiture of PolyVision and currency translation effects, the projected revenue translates to an expected organic decline of 28 percent compared to the fourth quarter of fiscal 2020.

The company expects diluted earnings per share for the fourth quarter of fiscal 2021 to be approximately breakeven. The estimate includes: (1) projected operating expenses of between $180 million to $185 million, and (2) projected interest expense, net of investment income and other income, net, of approximately $5 million. Steelcase reported diluted earnings per share of $0.55, and adjusted earnings per share of $0.39, in the fourth quarter of fiscal 2020.

“With the early stages of vaccine deployment beginning, some customers are reactivating idled project opportunities so they will be ready to return to their offices next year," said Jim Keane. “We are continuing to invest in new products designed to help customers make their offices safe, flexible, productive and inspiring.”

(*Consensus sees Q3 EPS of $0.09 on revenue of $684.5 million)

For earnings history and earnings-related data on Steelcase (SCS) click here.



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